LTD Broadband, a Minnesota-based company, won a bid in the federal auction in 2020, to expand broadband in rural areas. Since then, according to the Star Tribune, not much has gone right.
LTD snagged $1.3 billion in grants awarded by the FCC, with plans to cover rural areas (as part of the Rural Digital Opportunity Fund) across 15 states, including Minnesota. It was the biggest award for any company. Worried the company won’t be able to fulfill its obligations due to its size, telecom industry players, counties and townships, and state regulators have thwarted efforts.
The Star Tribune reported that the primary challenge is money, which is being held up. Federal regulators are still reviewing LTD’s “long-form” application, which includes detailed financial information, and until it’s approved, no money will be dispersed.
For Minnesota, that means 38 counties are in a holding pattern, since LTD Broadband’s grant of $311 million accounts for 76 percent of all money allocated to the state from the 2020 federal auction. The Minnesota Telecom Alliance and The Minnesota Public Utilities Commission are calling to revoke LTD’s permits. South Dakota and Iowa already revoked LTD’s permits, and the FCC said the company defaulted on its bids for California, Kansas, and Oklahoma.
“Public dollars are limited, making it essential that those who obtain public funding can be counted on to deliver broadband,” the telecom alliance said in its petition. “The record will show that LTD cannot.”
However, according to LTD founder Corey Hauer, the company has already begun building a fiber-optic network for broadband — including in Minnesota — even though it hasn’t yet received federal money. “It’s laughable that these parties say we can’t do it when we are doing it every day,” he said. He added that LTD is “hamstrung by the FCC” because the agency hasn’t yet allocated its grant money.
According to the Tribune, 2020 auction winners were chosen on their promises of low costs and high internet speeds. Winners were given three years to meet buildout benchmarks and three more years to complete the projects. Federal subsidies would cover a portion of the fiber buildout, with state grants also factored in.
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